Tech, engineering sectors lead office space absorption in October-December 22: Study
Office space absorption in the city stood at 1.7 million square feet during the October-December 2022 period, a study by real estate consulting firm CBRE South Asia Pvt Ltd said on Sunday. Technology sector accounted for 43 per cent, while engineering and manufacturing was 17 per cent, flexible space operators were 12 per cent while the IT segment alone took up lion's share in the office absorption space.
According to the report, small (less than 10,000 sq ft) to medium sized 10,000 to 50,000 sq ft transactions dominated the leasing in 2022. The share of large size deals over 100,000 sq ft remained at 7 per cent.
Bengaluru led the rank in office space absorption, followed by New Delhi-NCR (National Capital Region) and Pune dominated large-size deal closures in 2022. “With a sustained recovery in leasing, moderating vacancy levels and persistent demand for investment-grade assets, the rental recovery continued across cities throughout 2022,” CBRE Chairman and CEO India, South East Asia, Middle East and Africa, Anshuman Magazine said.
In line with the trends witnessed in the past, a strong supply pipeline and continued occupier interest in investment-grade buildings by leading developers and institutional owners is likely to lead to an increase in development completions in 2023, he said.